10/22/2023 0 Comments GrouponMajor shareholders believed Groupon had a long runway for growth.The breakup fee of $800 million offered by Google was apparently not sufficient to convince major shareholders and the company management as there was a lot of regulatory uncertainty surrounding this deal (remember, Groupon was a hot tech company back then).An excerpt from the book Groupon's Biggest Deal Ever by Frank Sennett published by WTTW in 2012 suggests there were three reasons behind the failure of this deal: Less than two years since its inception, in 2010, Alphabet Inc ( GOOG, GOOGL) ("Google") offered to buy Groupon for a staggering $5.75 billion, a deal that did not go through. Groupon, when it first emerged more than a decade ago, was an instant success. Groupon - Stuck between a rock and a hard place With Groupon stock price halved since then, the time is right to re-evaluate the prospects for this once-popular Internet company to determine whether GRPN is irrationally valued in the market today. In other words, I thought Groupon was cheaply valued for a reason. Still, I was forced to wait on the sidelines as I could not identify any catalysts that could drive the stock price higher in the foreseeable future. ( NASDAQ: GRPN ) published nearly a year ago, I claimed that Groupon was undervalued. More often than not, companies are cheaply valued for a reason, but every now and again, we come across companies that are irrationally valued in the market. If investing in stocks was as easy as identifying cheaply valued companies, I bet it would be tough to lose money in the market.
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